I wanted to put together a learning plan which tracks useful links / resources to read ahead of starting my PE stint in a couple months. Appreciate if the community can provide ideas to improve this list. Hopefully this can also help people be more prepared as they embark on their career in IB / PE. I would categorise these into a couple of knowledge areas: Financial and Accounting Concepts Financial Modelling Financial Analysis Process / Execution Knowledge Industry Knowledge __________________________________________________________ Financial and Accounting Concepts Thorough
01 Oct 2021
Thought this would be great for everyone to see. For all the importance of financial modeling and the focus on it - it isn't as important as many deem it. financial times article link: https://www.google.com/amp/s/amp.ft.com/content/0… Investment banks working to find ways to automate financial modeling. If this happened, and analysts lost that skill set, what would they do? They would think and we wouldn't be monkeys!!! Anyway, great food for thought. Just helps reinforce that as important as modeling is, it's not the be all end all. You can pop the article
14 Sep 2021
I need to practice and improve the logic around how I structure models with large amounts of disorganized data, particularly when drilling down into customer cohort data. Can I get some recommendations? I didn't come from an IB background, more the BD side of Corp Dev, so my modeling skills aren't where they should be. I'm able to find workarounds to get the right answer a decent amount of the time in the first attempt but my work tends to difficult to audit and adding new components to a model can cause breaks in other areas which I have to go back and patch. I've taken the basic modeling
07 Aug 2021
I have a 4-hr long test for an ER associate role coming up. It has both financial modeling and writing component. I have read a few older threads on this topic, but I cannot find an answer to my questions. so I'm trying to ask if anyone can help me to give some insights about the following: 1) During such a financial modeling test, when doing DCF valuation to come up with a price target, do you discount free cash flow to the firm (FCFF) using WACC or free cash flow to equity (FCFE) using cost of equity to arrive at a price target? 2) Should I prepare to create a 3-statement integrated
06 Sep 2021
I have two Superdays this week with two middle market investment banks for an Analyst position, I have never experienced a superday interview before so I am looking for any help I can get on technical questions, behavioral questions, fit questions, or just what I can expect throughout the superday. I am a current senior in college, and I have completed two finance internships. The areas I am focusing on to prepare for the interviews are: Accounting Valuation Industry Specific metrics Case Studies Modeling (I have no prior experience) I understand I will not be able to master all of the above
08 Oct 2021
I've been trying to break into project finance and would like your guys' input. A lot of positions I've seen online (both in project finance and infra PE) say the CFA is a nice to have, so I signed up to take L1 this December (whether that actually happens is another story). However, as we all know, though the CFA is well-regarded, it's not aimed at every industry, and other than being a "nice to have" to check a box, I don't see how it would be all that useful in infra overall. So I'm considering pushing L1 to February and learning project finance modeling. I don't necessarily feel confident
29 Sep 2020
A friend sent me an old modelling test he had to complete for a BB a few years ago so that I could practice but I am having trouble with it (Balance Sheet wont Balance, not sure if margin assumptions are right). Would anyone be willing to take a look and see where I am messing up or what I should change? It's not super robust, very simple for someone who knows what they are doing I am sure. I don't know how to attach files here so I can send it or someone can tell me the best method. Would really appreciate any help.
17 Apr 2020
Hi, so I'm working my way through this PE case study. They have given me a large QoE report file with a list of things for me to do. One of the things they asked me to do is build a CFS for the Last Twelve Months (LTM). Given that the QoE report has both an IS and BS, this seemed like a pretty straight forward task. The IS and BS are in monthly periods from Jan-18 to Sep-20, and while I hadn't seen monthly periods in IB/PE case studies before, that shouldn't really matter. Well, I built out my CFS all the way to the bottom without issue, until I compared my ending cash balance with the cash on
02 Sep 2021
Hey, looking for (1) advice as to how can I position my accounting job so it could be somehow useful for ER profile when the time comes. I am learning SAP FICO module and will work with the same within the next 3 months (placement started). Also, am targeting tech companies and e-commerce so as to understand the business more. (2) Advice on any other industry to target would be great. The other threads have been useful as to what skills would help me out but some specific guidance/tips would be appreciated. Background: Current age: 22, Commerce grad (easy UG course), bad GPA : 2.3 , 2 year gap
22 Nov 2020
With the increase in popularity with SPACs instrument during the last year, what is the best way to model them? SPACs are listed instrument but issues come with the short historical data from them. It comes from the very nature of the product where SPACs generally survive for a maximum of 2 years before an acquisition is done (or not). It is to say, maybe it's the choice of the proxy that could fixed this situation, but what would it be? Technically it can't lost more that what is invested initially minus expenses, because there is always the option to say no to the deal and redeem his share's
09 Dec 2020
Hey guys, Ever since the FASB has made it mandatory to report Operating Lease Assets and Liabilities on the Balance Sheet, I've not been sure how to forecast it reasonably. I understand that you can find the PV of Lease Payments and subtract interest expense for liabilities, or subtract depreciation for assets, etc. But when the lease payment is actually due (current year), do we just count that as principal repayments and have the remaining lease payments PV on the balance sheet? Would love clarity on forecasting this, if anyone should have the insight. Thanks!
03 May 2020
Interested to know under what circumstances people would consider shifting from Excel to something else. Google Sheets currently doesn't have the same level of features as Excel, but there are obvious advantages in terms of things like collaboration. Some aspects of Excel are seriously frustrating (can't dual screen the same model, no version control, trace/precedents dependents is essential but pretty terrible). Some of these things can be solved by plugins but not all of them. So what would it take for you to move? Either onto Google Sheets or even completely different software. Parity with
17 Feb 2020
I need a small favor. I have a very basic question about discounted cash flow modeling. I think I know the answer, and it is probably obvious, but I have been thinking about it so much that I have confused myself. This issue is very important to a financial model I have created for the acquisition of a property so I want to make sure I get it right. If you have 10 minutes to spare, please look at the attached spreadsheet and fill in the spaces highlighted in yellow. This is essentially a VERY simplified version of the issue I am having in my real model regarding time 0 cash flows and the
29 May 2019
I want to know if people in the community would be interested in a really tactical guide and example of what modeling looks like on the buyside. Before I joined the buyside five years ago, I was very intimidated by the unknown and especially by financial modeling. What did modeling look on the buyside? How complex was it? What should it look like? I wondered stupid things like how many tabs do they have and what are they? I had never seen an example and to be honest, now with hindsight, most of what I see online is way more complex than what people actually do and I want to shed some light on
15 Sep 2021
This is my first post to WSO so I hope I'm doing this correctly. Here's a little about myself... Job : 1 year doing corporate finance at Top 3 Bulge Bracket bank Undergrad : (Mid-Atlantic) Non-Target - Penn State, Maryland, UNC Major GPA: 3.7+ Internships: 1 year at Elite RE development firm that builds casinos, entertainment complexes, shopping centers, multi-use etc
21 Aug 2014
Has anyone taken the courses and gotten the certification? I was told by a few senior people that taking this would look great on the resume and would help me lateral into an underwriting analyst role, since I am in an entirely different industry at the moment. Any thoughts or comments on this? Any other suggestions on what I can do to stand out as a lateral applicant?
23 Jul 2014
I have a second round interview coming up for an IB analyst position. All I know from the recruiter is that it will be an hour long technical interview with the associate and that it will involve testing my modeling skills and knowledge- DCF, LBO etc. I am assuming this involves a modeling test but I would find it surprising if I was asked to do an LBO AND a DCF model. Any thoughts on how I should prepare?
05 Jul 2019
Can anyone recommend the most ideal financial modeling training course - (assuming it will be self-taught)? Without price being an issue - I am looking for a single program or a combination which will be the most practical and appreciated by the Bulge Brackets and Larger PE Shops who have analyst programs. Any advice would be appreciated. Financial Modeling Training Courses I'm considering: Wall Street Prep (15% WSO discount) http://www.dealmaven.com/community/login.aspx
09 Jun 2008
I am new to CRE and just started working as an analyst for a REPE firm. I have never used Argus before but started using it today. I have a lot of questions and am hoping someone on WSO can help me out. I am working for a small firm in the Midwest and am the only analyst (only person that has an Argus license). The firm I am working for is looking to acquire office's (mainly high-rise's) through out the country. I would like to get some best practices from experienced individuals. When presented with an OM & Argus file, do you create your own Argus file from scratch or just manipulate the
11 Jul 2017
Hey guys, I am looking for analyst level modelling tests. Have a couple of such rounds coming up and would like to prepare. In return, I can share the ones I have - both M&A (just have one atm) and PE LBO tests (from MFs and UMMs) DM me if you are down to swap!
13 Jul 2021
Hi guys, What are color conventions that you guys follow to make your financial models idiot proof? There are so many links and assumptions that I am finding it difficult to standardize. Right now I have: assumptions=blue Hard coded inputs= blue with a background color Drivers such as '% of revenue'= green formulae= black links to other worksheet in same workbook=black referencing from other workbook=red Please share!! Financial Modeling Text Color Codes First - it is important to note that each firm / group could have its own preferences - when working you should simply adhear to that format
01 Jan 2012
Hi guys, Need your help on LBO modeling timings. Not a standard job, a pretty big one. To put it short - from your practice, how long can it take to complete a big modeling job (if we disregard any other outside factors like management etc). I would appreciate your thoughts. It's the first time I'm posting any questions, and have never spoken to anyone from PE or IB on how it works in their practice, so I would like to have better understanding of how much time it usually takes to complete certain modeling things. I'm working alone to complete everything. I'm not from PE myself, work in a
13 Nov 2019
I am currently working my way through BIWS (fantastic course btw), and I am now up to LBO valuation. I often hear about kids being asked about basic accounting, projection models, DCF analysis, and multiples. However, I have not heard anything about merger models and LBO questions in interviews. How common are these? Should I spend just as much time on these as the other aspects of financial modeling?
05 Jul 2011
I have been trying to model this and am having trouble. Any help in terms of how to tackle this (a template or thought process) will be appreciated Investor 90% $18,000 Sponsor 10% $2,000 Initial Equity $20,000 IRR Investor Sponsor Hurdle 3 12% 100% 0% Hurdle 4 18% 85% 15% Hurdle 5 22% 80% 20% Final Split 70% 30% Assume for $6000 cash flow for the next 10 years. Thanks
16 May 2012
Hello! I'm interviewing for a mid-level Financial Strategy role and for the case study, they had me create a financial statement model (mainly just P&L). I have an interview with a hiring manager coming up to discuss my work. I assume that the interview will begin with being asked to walk her through my model and the logic behind my assumptions. Do any of you have any ideas on what questions I should prepare for? For context, the job responsibilities entail forecasting performance & short/long-term trends, providing strategic insights to key stakeholders, guiding investment capacity decisions
22 Jun 2021
Hey guys, I was given a class project (high school) to try and come up with a entrepreneurial idea. The focus was on some sort of small business idea on a high school level (babysitting, dog care etc.), but I don't really have any interest in that kind of work. Instead, I came up with the idea of creating a company which analyzed companies' financials, developing pre-made discounted cash flow models. These DCFs could be downloaded and used as analysis tools for investors. I came up with the idea because many investors do not have the time to fully analyze the viability of a potential investment, and by doing the labor intensive work for the customer (building out the model), we could potentially save people a lot of time.
02 May 2011
I don't know how many people here have to review huge financial models quite frequently (rather than create them). For my last transaction I was reviewing a lot of financial models on very short timelines - my usual "system" is to go line by line through the financial statement and trace precedents and see how the various items have been built. I also have a few macros (from the internet) to compare changes made between versions etc etc. However, I would be interested in knowing what other "reviewers" do in terms of devising a system or process to review models esp. on tight timelines. Thanks in advance.
04 Mar 2012
Summary This is not a financial modeling course like the one that is offered at Wall Street Prep, Investment Banking Institute or Analyst Exchange. Mod Note Not WSO competing products. Rather this is a series of free tutorials that help modelers on best practices on how to do modeling (formatting, structure, setting up). I completed the 30 days challenge and I can definitely see that my modeling skills have improved a lot. Would highly recommend "experienced" Monkeys to tried it out. Once again, it does not teach you modeling. It is more focused on best practices on setting the cells, formatting and building a structure to make your modeling easier and standardized across the banks.
12 May 2012
Has anyone heard of the IB Career Path??? http://www.ibcareerpath.com/ The first program I found was the Investment Banking Institute, but they have only the seminar program, then I found out about the Analyst Exchange, which you have the opportunity to do an internship guaranteed for 4 weeks. Then The Investment Banking Career Path and The Analyst Exchange have the same price but in The IB Career path you a 3 months guaranteed internship in I-Banking. I am trying my best and I know when there is no opportunities, you will have to create them, so I was wondering if anybody has been in this program due to I am worried about the quality of the program and if it is a worthy internship for investment banking.
03 Apr 2011
I am trying to improve my chances of getting an IB internship and was going to do a financial modelling course. Any thoughts as to which modelling program / offering will get the highest / best response as part of the selection process?
08 Sep 2021
I always struggle formatting models that I create from scratch. I don't have any issues building the model itself, but it always ends up visually looking bad. Does anyone have any good model formats they can share? Screenshots (or excel files) would work... I'm just looking for how to make shit look good visually. A few examples: how to format the date cells along the top be: no-fill with bold text or solid fill with white text? Or how to format total and subtotal rows: light grey fill? no fill with double underline? both? FML please help
25 Jun 2020
I've got slight problem here, having brainfreeze on how to value debt tranches. I've got 3 tranches of debt: 1. 150mm RCF - effective interest rate 3.61% (trading at 90) expires 2014 2. 150mm TLA - effective interest rate 10.5% (trading at 95) expires 2014 3. 75mm PIK - effective interest rate 15% (trading at 55) expires 2016 Current date is year end 2010. All are bullet repayments. 1. The RCF is currently modelled to be undrawn, or at most only drawn about $30mm - $50mm (depending on whether it is extended). 2. The TLA is going like a normal bond (eg (150)mm cash out in 2010, accrues interest to 2014 and is paid back in 2014).
24 Jan 2012
I am relatively new to modeling and working on an assignment. Hoping some experienced banking analysts can help me out with this problem. I have been asked to do an analysis on a company and all I have is an I/S and B/S with 3 years historical info ( year end 2008, 2009, 2010). I also have Q1 2010 and Q1 2011 numbers for the I/S & Q1 2011 numbers for the B/S. The firm has negative revenue growth from 2008 to 2009 (-30%) and 2009 to 2010 (-15%). From Q1 2010 to Q1 2011 the firm's revenue growth is -5%.
17 Jun 2011
I just got back from an interview with a boutique private equity firm for a sophomore summer internship. About 2 weeks ago I talked with a VP on the phone and we got along well, and I made it clear that I do not know how to do financial modeling (I noted that I know the basic process of a DCF and I understand the use of multiples). I stressed the fact that this internship would be a learning opportunity and a great way for me to get my hands dirty with modeling. He seemed to be ok with this and mentioned that they had had interns in the past who did not have any modeling experience either.
14 Mar 2011
Hey guys, I'm starting FT at a boutique PE shop at the end of July. The firm is really new so I'll be the only analyst in the office. Needless to say, there is no formal training program so the partners have asked me to find a self-study financial modeling course. I have listed the three courses I've come across below. I would greatly appreciate any feedback from those of you who have used these programs. Also, if there's other recommended courses, feel free to post them. Thanks guys! Wall St Prep Self Study - $499 $424 through WSO by Clicking Here Training the Street - $300 Breaking into Wall
26 Jun 2013
Dear all, I got past my second round interview for equity research associate position, and they have sent me an assignment to do. I was wondering if anyone had a dynamic 3 statement financial model that they would be so kind as to let me see. I want to make sure that I am doing everything right, and a good reference would be huge. I really appreciate your help. My assignment is due Friday, so time is of the essence. Thanks!
11 Jul 2012
Just a quick question regarding accounting/modeling. I have been learning to model with BIWS and recently tried to model two companies on my own from scratch. The place I'm having problems with is reconciling the current year BS and cash flow statement. For example, my formula for current year changes in accounts receivable in the cash flow statement is last year's A/R - this year's A/R on the BS. The difference between the years isn't equal to the amount reported on the cash flow statement. I know things like acquisitions can cause these discrepancies, but there weren't any. I read through the notes and couldn't find any explanation or adjustment that needs to be made.
21 Feb 2014
So I'm looking to catch up to speed to transition my career from sales to become more of the analyst role. A friend suggested I take some courses on financial modeling, learning how to create valuation models on excel. Of course, I can go and pick up several books, but like many, I need some structure that will help me obtain these skills. I'm a very quick learner. Main question is this Private Equity Finance Institute. Please do not mistaken this for Private Equity Institute. This company goes by PEFIN, or private equity finance institute. I can't seem to find nothign on this company. They have like 10 different web addresses. www.lbopro.com www.mnaschool.com www.pefin.com
07 Feb 2011
Each company and each analysis is different, however, the "bare-bones" fundamentals are the same for DCF, Comps, precedent transactions, etc. So with that, do you guys build models and valuations from scratch (as in format, labels, sheets, cells, everything) or do you use a generic bare-bones template then modify accordingly? Cheers!
06 Nov 2017
Hi, In a couple of weeks I'll work at a small PE firm in Europe. I hope you guys can give me advice. Your opinion is truly appreciated. Thanks! 1) Is it necessary to build a detailed financial model before the LBO model? I've ordered the Wallstreet prep package. The LBO model is pretty straightforward, however the LBO model is linked with a very detailed (and time consuming) financial model & forecast (including BS, IS, Debt, CF). Should I always build the entire financial model before I can do the LBO model? 2) Is there a way to build a financial model more easily/quickly? The wallstreep prep model takes around +150 pages to build.
22 Jun 2009
So I'm working through a 3 statement model that projects out over 5 years. I had to do a model in the interview today and he gave me another model to take home and complete to discuss tomorrow AM. I have completed forecasting out the AR and Inventory but I'm lost on how to balance out the equity portion as my "check" is like $3k off. Can someone please help me figure this out and then explain to me how they did this? I'm not sure what to even google to find out how to finish this thing. Also, the interviewer told me that forecasting out the non-cash items (you'll see if you open the file) is
12 Jun 2019
Im looking at a deal that involves future debt funding for TI/LCs and CapEx. Lender is obligated to pay call it 50% of future TI/LC's and CapEx up to $10MM, upon which the Sponsor is on the hook for the remaining TI/LCs and CapEx, total cost is $15MM. $10MM Lender funded and $5MM Sponsor. Assuming the schedule of these expenses is irregular (i.e. $2MM Yr 1, $500k Yr 2, $3MM.......$750k Yr 5), how would I best model an accurate balance of future funding paid by the lender up until the $10MM future funding limit? After the lender has paid their share up to the future funding limit ($10MM), the
15 Jul 2019
Given these parameters: -Data is already available (copy-paste to excel or import) -Supporting schedules are the following: Debt, Working Cap., Depreciation, PPE -Reports and analysis for revenue growth assumptions available -IS items are projected based on Rev. (except Interest and Dep.) -BS items are projected as % of Rev. / COGS (except working capital and fixed assets) -Simple / minimal stock options and convertibles tranches for treasury stock method. I know that quality and accuracy of work should not be compromised for speed but I'm just pacing myself since I'm practicing modeling.
19 Dec 2017
This has been bugging me for ages. Assume CapEx is $1,000. Which version is correct? Version 1 Tax-Adjusted EBIT.......xxx Less/Minus: CapEx....1,000 Version 2 Tax-Adjusted EBIT......xxx Less/Minus: CapEx...(1,000) Version 3 Tax-Adjusted EBIT....xxx CapEx.......................1,000 Version 4 Tax-Adjusted EBIT....xxx CapEx.......................(1,000) Which ones are correct? I've seen all 4 being used
12 Apr 2011
Anyone have any ideas on how to solve this thing? I was hoping someone a little better at these cases might be able to talk through working through it. I've been working through some practice case studies on the internet that I had found and was curious as to how you would go about modeling out the midyear dispositions. Would it just be as simple as (r/sftotal sf)-(r/sfdisposed sf)*0.5 or is there a better way/more appropriate method of thinking through rent contributions from the disposed properties?
14 Jan 2021
I have an interview coming up with a BB in their oil and gas group. I have gone through all the oil and gas modeling 101 guides and sample videos. I think I have a good basic understanding of the all different things that flow into an O&G valuation.
27 May 2012
This is an asset purchase. The purchase price is 4.5 x EBITDA of $5mm = $22.5mm. The Buyer is assuming $7mm of long term debt related to the assets being acquired. The Seller is responsible for paying off the $5mm line of credit. There is no other debt. Transaction fees are estimated to be $1mm. Per the terms of the transaction, the Seller is providing a 5mm seller note and has agreed to a $4mm earn out. In addition, the Seller has agreed to invest an amount of cash sufficient to purchase 20% of the NewCo equity. Is the following Sources and Uses correct? Sources Long Term Debt: $7mm Sponsor Equity: $6mm ( plug = total uses of $13mm less $7mm long term debt; of this equity, 20%, or $1.2mm, provided by Seller and $4.8mm provided by Sponsor) Total: $13mm Uses
07 May 2014
I know this maybe asking for a lot, but can anyone send me a fully built out financial model?!? I remember doing one in college but I can't find that one and I'm wanting to polish my skills. You don't have any idea how much I would appreciate this favor!!!! You don't have to post on this thread, you can PM me and I will quickly respond with my email address!!! Thank you so much!!
02 Aug 2011
Hey guys, looking into breaking into corporate finance and was wondering what the best self study financial modeling program out there? I have solid excel skills but am a novice when it comes to financial modeling. Also, am a novice when it comes to VBA/macros. I want to learn how to do financial valuations (ie DCF valuations), variance analysis, forecasting, and any other essential technical skills needed to become an financial analyst. I've heard mixed reviews regarding WallStreetPrep, and simon benninga's financial modeling book. Any advice regarding making this career transition would be great. Thanks..
20 Oct 2013